Ipec allows for USD payments for Zimdollar policies

Ipec allows for USD payments for Zimdollar policies

Staff Writer

HARARE, The Insurance and Pensions Commission (Ipec) has said as part of measures to mitigate financial vulnerabilities caused by the novel corona virus, policyholders may now pay their insurance premiums I foreign currency using free funds at the prevailing rate on the date of payment.

“This means that in respect of policies that are denominated in Zim Dollars, policyholders may pay their premiums in foreign currency as provided for in SI 85 of 2020,”  Grace Muradzikwa, the Ipec’s commissioner said.

She noted that for avoidance of doubt, the provisions of S I 85 should not in any way be misconstrued as authorization to issue foreign currency denominated policies.

Muradzikwa said with exception of policies that are expressly denominated in foreign currency as authorized in terms of SI 212 of 2019 and IPEC circular 13 of 2019, all other policies shall remain Zimbabwe dollar denominated.

She said the amount of the premium in foreign currency must be determined in reference to the Zim Dollar, at the ruling rate on the date of payment.

“It should be noted that the measures outlined in SI 85 of 2020 are a reprieve to the adverse impacts of covid 19 and are expected to be reviewed when the situation improves,” she said.